Responding to the publication of the Pensions Commission’s report Irish Congress of Trade Union general secretary Patricia King said: “This is a comprehensive and detailed report which puts forward a wide range of recommendations to share the increasing costs of the State Pension between the State, employers, the self-employed, workers, and the generations. It is not without its challenges.
Ms. King said: “Congress has never denied the challenge population ageing presents for the public finances if no action is taken.
“However, the 2011 Pensions Act put Ireland on course to have the highest pension age in the OECD in 2028, despite our young population. It went too far too fast and forced workers at 65 to sign-on, putting them at risk of poverty at the end of a long working life.
“Congress is pleased the Commission has heard and agreed with us on this.
“The Commission is recommending moving to a European-style flexible pension age, including proposing Government give a right to retire on a full State Pension from age 65 to workers who have worked from a young age. Congress was first to identify the need for and to urge Government to introduce provision for early access to the State Pension.
“Recommending an increase to the pension age be delayed and introduced much more gradually over a longer period is an improvement on previous government policy and in line with pension policy in other EU member states. However, as this would still result in an increase in the pension age to 67 and 68 for people without sufficient PRSI contributions, Congress could not support this recommendation.
She added: “Congress is pleased the Commission is recommending new legislation to allow, but not compel, workers, to remain in their jobs up until at least the pension age. Unions have long argued existing ‘soft’ measures have proved inadequate for far too many workers who want to stay in their job beyond the retirement age in their employment contracts.
“On the recommended increases to social insurance contributions, Congress agrees, along with a range of bodies, including the State’s own advisory body - the Tax Strategy Group, that the self-employed contribution should be adjusted up to at least the employer rate.
“Congress is also on the record in noting Ireland as an outlier on employer social insurance contributions. Employers pay the second-lowest rate in the EU. We are disappointed by the Commission’s lack of ambition in the size of the increase they recommend for employers.
“Congress is concerned that the recommendations to remove the exemption to pay PRSI on people aged 66 and over, including on occupational pensions, could unfairly and disproportionally affect certain groups of pensioners. We are calling for the Commission on Taxation and Welfare to be allowed the time and space to consider these recommendations further before Government takes a decision.
“Congress is pleased to see many of our longstanding policy positions on benchmarking and index-linking pension payment rates, on introducing auto-enrolment, on ringfencing State Pension contributions, on issuing regular PRSI contributions statements, and on easier access for long-term carers included in the Commission’s recommendations.”
Ms. King said: “Congress will continue our engagement with our members, Government and Opposition, and the Commission on Taxation and Welfare to ensure the increasing financial costs of the State Pension will, as intended by the Commission, be shared fairly and equitably.”
